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Ephemeral nanoeconomy
An Ephemeral nanoeconomy is a nanoeconomy programmed under laws governed by Ephemeral Economic theory. Perennial economics In order to understand what an 'ephemeral nanoeconomy' is, it's important to understand what it isn't. All modern economic systems have derived historically from either "The Gold standard" (a monetary system based on real units of Gold) or a Fiat currency (currency that a government has declared to be legal tender, but it is not backed by a physical commodity).https://www.investopedia.com/terms/f/fiatmoney.asp In both cases, the money itself is intended to be redeemable in value at ANY TIME. Whether that be today or in 10 years from now, e.g. $20 note should be redeemable for anything priced at $20 or less. Inflation Of course, the buying power of a currency is not static over time. A US $20 note in 1900 could buy a lot more meals than it could in 2000. However, the note itself is not worth less than $20 - the price of commodities and labour has simply risen relative to the perceived value of that $20 note. Degradation Notes and coins might degrade over time, so technically they aren't "perennial" but they should always be redeemable or tradeable for new notes when they are phased out. Ephemeral nanoecomics The concept of non-perennial money is not something that has ever been native to logical economic thought, since the entire point of money historically was to provide a security of value into a tangible but unobstrusive object, so that valuable services and goods may be traded without the need for direct swaps - an intermediary. To receive remuneration for a service or valuable only to find that the remuneration is not perennially redeemable would frustrate or horrify most people under modern consumer society. The meaning of course being, that wealth can no longer be permanently stored away. Game theoretical foundations The point of introducing ephemerality to an economic model was initially to test a game theory proposition: Is there an economic system in which the Nash equilibrium is global network co-operation? The most fundamental constraint that turned out to impact the likelihood of such a system was the principle of 'interest' (or Usury). Under any economic system in which interest is earned on accumulated wealth, wealth accumulation has a tendency to become self-fulfilling. Hence, there is a strong motive for the wealthiest nodes of such an economic network to accelerate their own wealth accumulation exponentially and not co-operate at all. Perishable economics A very simple early proposal for an anti-usury economy was one in which negative interest was applied to wealth, but such systems tended to be too unstable to reach a meaningful equilibrium. Instead, ideas lead towards the proposal for an economic system in which currency that was not 'shared' was devalued over time - like stale bread that wasn't eaten. Contextual nanoeconomics No economic models so far have been proven to reach the Nash equilibrium as proposed, but some of the most advanced attempts have focussed on developing models in which the value of a currency is devalued only in proportion to the 'missed opportunities' for it to be shared. Such models tend to allocate different 'ephemeral inflows' to each node in the network as a sort of 'instantaneous income' (e.g. in a nanoeconomy with a 10 minute economic period, node 1 might earn 9.21 units per period, while node 2 might only earn 3.23 in the same period). Nodes which are deemed to be spending their inflow in the most 'connective' ways are granted increased inflows as a way to incentivize sharing of income as opposed to accrual of wealth. References Category:Nanoeconomics Category:Economics Category:Nanodemocracy